Smith & Wesson Misses the Mark

Gun buyers loaded up on weapons in fear of regulations that never materialized. Now, with lower sales in the company's sights, the stock may fall short.

Smith & Wesson reported a better-than-expected first quarter, but investors are selling off the stock as the gun maker's second-quarter guidance missed the mark.

Late Thursday, Smith & Wesson (ticker: SWHC) reported earnings of $26.5 million, or 40 cents a share in the quarter ended July 31, up from 27 cents a share a year earlier. Revenue grew 26% to $171 million. Analysts were looking for the company to earn 36 cents a share...